At the start of the credit crisis in 2008, the Deposit Insurance Fund contained $45 billion, but it has been rapidly depleted. FDIC recently increased bank premiums to make up for the shortfall, and can draw on a  $500 billion line of credit from the US Treasury, if necessary, as it did in 1991 to protect depositors in the aftermath of the S&L crisis.

When a bank or savings and loan is ordered closed by government regulators, the FDIC is appointed Receiver, with responsibility for the payout of insured deposits up to $250,000 * per qualified account; and liquidation of the institution's assets, which are distributed to creditors.

When a bank fails, the FDIC provides written notice within 30 days to insured depositors advising they must claim their deposit from the FDIC, or if the deposit has been transferred to another institution, from that institution. A second notice is mailed 15 months after the first.

► Be advised, however, that not every depositor with funds in a failed bank will receive notification from the FDIC.

Beneficial owners of fiduciary accounts, including Uniform Transfers To Minors (UTMA) accounts, escrow accounts, Interest on Lawyer Trust Accounts (IOLTA), and deposit accounts obtained through a broker (Brokered Accounts) will not be contacted by the FDIC.

This is because these accounts are on the failed bank's records in the name of the fiduciary, not the individual owner. The FDIC does not have access to ownership information, and therefore will not contact individual depositors. It is the responsibility of the broker or other fiduciary to initiate a claim.

► There are negative consequences for those who fail to promptly claim insured funds.

Accounts transferred to successor institutions may have lower interest rates and can lose insurance coverage, after a period of time, generally six months. If an individual already has accounts at a successor institution, perhaps unknowingly in the case of brokered deposits, the insurance limit may be exceeded and funds could be lost in a subsequent receivership. In a worst case scenario, claims on accounts which are inactive for an extended period may be time barred, and safe deposit boxes can be drilled and the contents sold at auction.

It is important to understand you may have an account at a failed institution and not know it, either because you were a depositor at a bank acquired by an institution that subsequently failed, or if you are the beneficial owner of a brokered or trust account.

◄ For specific claims information and a list of other banking institutions that a failed bank has acquired over the years, select a bank closure from the list, or go to: Bank Search

► Different rules apply to failed Credit Unions

The National Credit Union Administration (NCUA) supervises and insures over 7,329 federal credit unions and 4,538 state-chartered credit unions.

When a federally-insured credit union is liquidated, NCUA's Asset Liquidation Management Center - not the FDIC - assumes responsibility for paying share accounts to members. NCUSIF, The National Credit Union Share Insurance Fund, currently insures member deposits up to a $250,000 * limit.

Since 1990, more than $331 million has been paid out to well over 100,000 shareholders.

There are time limits on claims. Accounts claimed within an 18-month insurance period are paid the full insured amount. After the 18-month insurance period, unclaimed shares are considered uninsured and are written down to subsidize any losses incurred.